off-the-wire

UPDATE 1-Petroecuador declares force majeure in oil field amid conflict with local community

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds estimates of production loss) QUITO, March 19 (Reuters) - Ecuador's state-owned oil and gas company, Petroecuador, said on Sunday it would declare force majeure on its Eden Yuturi oil field in the eastern part of the country amid a conflict with a local community. In recent weeks, the Kichwa Indigenous community of Eden has protested what it alleges is the company's breaching of agreements. Petroecuador said in a statement it is implementing force majeure because the El Eden Kichwa community's actions have disrupted operations since Feb. 21.


"The length of this declaration of force majeure will be subject to the definition or agreements reached by government entities with the communities," it said.


In a subsequent statement, the company said the stoppage at the Eden field has resulted in a daily loss of 4,900 barrels of crude. Combined with interruptions caused by Saturday's earthquake and other failures, the company has experienced a drop of 24,000 barrels in daily production. Petroecuador's Block 12, where the Eden Yuturi oil field is located, produces around 29,200 barrels per day (bpd) of crude out of the 390,446 bpd that Petroecuador produces in total. In mid-2021 the field was also under force majeure due to conflicts with the same community. (Reporting by Alexandra Valencia in Quito; Writing by Fabián Andrés Cambero in Santiago; Translation by Jackie Botts in Mexico City; Editing by Matthew Lewis and Tom Hogue)

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